BILL NUMBER: AB 1595	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  MARCH 29, 2012

INTRODUCED BY   Assembly Member Cook

                        FEBRUARY 6, 2012

    An act to amend Sections 6051 and 6201 of the Revenue and
Taxation Code, relating to taxation, to take effect immediately, tax
levy.   An act to amend Section 38012 of, to add
Section 500 to, and to add Chapter 8 (commencing with Section 38600)
to Division 16.5 of, the Vehicle Co   de, relating to
vehicles. 



	LEGISLATIVE COUNSEL'S DIGEST


   AB 1595, as amended, Cook.  Sales and use taxes: rate
reduction: unemployment rate.   Vehicles: recreational
off-highway vehicles.  
   (1) Existing law establishes rules for the operation of, and
requirements for equipment of, an off-highway vehicle. A violation of
these rules and requirements is a crime.  
   This bill would additionally define a recreational off-highway
vehicle, as defined, as an off-highway vehicle. The bill would
establish additional requirements governing the operation of a
recreational off-highway vehicle. Because a violation of these
provisions is a crime, this bill would impose a state-mandated local
program.  
   (2) The California Constitution requires the state to reimburse
local agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.  
   This bill would provide that no reimbursement is required by this
act for a specified reason.  
   Existing law imposes a state sales and use tax on retailers and on
the storage, use, or other consumption of tangible personal property
in this state at the rate of 61/4% of the gross receipts from the
retail sale of tangible personal property in this state and of the
sales price of tangible personal property purchased from any retailer
for storage, use, or other consumption in this state. 

   This bill would, commencing on July 1, 2013, decrease the state
sales and use tax rate by 1/2 of 1%. This bill would require the rate
reduction to take effect only if the California unemployment rate
average for the last 2 quarters of 2012 is 8% or higher, and would
require the rate reduction to remain in effect only until the
California unemployment rate is less than 8% for 3 consecutive
quarters, as provided.  
   This bill would take effect immediately as a tax levy. 
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program:  no   yes  .


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

   SECTION 1.    Section 500 is added to the  
Vehicle Code   , to read:  
   500.  "Recreational off-highway vehicle" means a motor vehicle
meeting all of the following criteria:
   (a) Designed by the manufacturer for operation primarily off of
the highway.
   (b) Has a steering wheel for steering control.
   (c) Has nonstraddle seating provided by the manufacturer for the
operator and all passengers.
   (d) (1) Has a maximum speed capability of greater than 30 miles
per hour.
   (2) A vehicle designed by the manufacturer with a maximum speed
capability of 30 miles per hour or less but is modified so that it
has a maximum speed capability of greater than 30 miles per hour
satisfies the criteria set forth in this subdivision. 
   SEC. 2.    Section 38012 of the   Vehicle
Code   is amended to read: 
   38012.  (a) As used in this division, "off-highway motor vehicle
subject to identification" means a motor vehicle subject to 
the provisions of  subdivision (a) of Section 38010.
   (b) As used in this division, "off-highway motor vehicle"
includes, but is not limited to, the following:
   (1)  Any   A  motorcycle or motor-driven
cycle, except for any motorcycle  which   that
 is eligible for a special transportation identification device
issued pursuant to Section 38088.
   (2)  Any   A  snowmobile or other
vehicle designed to travel over snow or ice, as defined in Section
557.
   (3)  Any   A  motor vehicle commonly
referred to as a sand buggy, dune buggy, or all-terrain vehicle.
   (4)  Any   A  motor vehicle commonly
referred to as a jeep. 
   (5) A recreational off-highway vehicle as defined in Section 500.

   SEC. 3.    Chapter 8 (commencing with Section 38600)
is added to Division 16.5 of the   Vehicle Code   ,
to read:  
      CHAPTER 8.  RECREATIONAL OFF-HIGHWAY VEHICLES


   38600.  A person operating a recreational off-highway vehicle
shall be at least 16 years of age, or be directly supervised in the
vehicle by a parent or guardian or by an adult authorized by the
parent or guardian.
   38601.  A person shall not operate, or allow a passenger in, a
recreational off-highway vehicle unless the person and the passenger
are wearing safety helmets meeting the requirements established for
motorcycles and motorized bicycles pursuant to Section 27802.
   38602.  A person operating, and any passenger in, a recreational
off-highway vehicle shall wear a seatbelt and shoulder belt or safety
harness that is properly fastened when the vehicle is in motion.
   38603.  A person operating a recreational off-highway vehicle
shall not allow a passenger to occupy a separate seat location not
designed and provided by the manufacturer for a passenger.
   38604.  A person operating a recreational off-highway vehicle
shall not allow a passenger to grasp the occupant handhold unless the
passenger, while seated upright with his or her back against the
seatback and both feet flat on the floor, can do so with the seatbelt
and shoulder belt or safety harness properly fastened. 
   SEC. 4.    No reimbursement is required by this act
pursuant to Section 6 of Article XIII B of the California
Constitution because the only costs that may be incurred by a local
agency or school district will be incurred because this act creates a
new crime or infraction, eliminates a crime or infraction, or
changes the penalty for a crime or infraction, within the meaning of
Section 17556 of the Government Code, or changes the definition of a
crime within the meaning of Section 6 of Article XIII B of the
California Constitution.  
  SECTION 1.    Section 6051 of the Revenue and
Taxation Code is amended to read:
   6051.  (a) For the privilege of selling tangible personal property
at retail a tax is hereby imposed upon all retailers at the rate of
21/2 percent of the gross receipts of any retailer from the sale of
all tangible personal property sold at retail in this state on or
after August 1, 1933, and to and including June 30, 1935, and at the
rate of 3 percent thereafter, and at the rate of 21/2 percent on and
after July 1, 1943, and to and including June 30, 1949, and at the
rate of 3 percent on and after July 1, 1949, and to and including
July 31, 1967, and at the rate of 4 percent on and after August 1,
1967, and to and including June 30, 1972, and at the rate of 33/4
percent on and after July 1, 1972, and to and including June 30,
1973, and at the rate of 43/4 percent on and after July 1, 1973, and
to and including September 30, 1973, and at the rate of 33/4 percent
on and after October 1, 1973, and to and including March 31, 1974,
and at the rate of 43/4 percent thereafter.
   (b) (1) Notwithstanding subdivision (a), on and after July 1,
2013, the rate shall be 31/4 percent.
   (2) The rate reduction required pursuant to paragraph (1) shall
only take effect if the California unemployment rate average for the
last two calendar quarters of 2012 is 8 percent or higher, and shall
remain in effect only until the end of the calendar quarter in which
the California unemployment rate is less than 8 percent for three
consecutive calendar quarters.  
  SEC. 2.    Section 6201 of the Revenue and
Taxation Code is amended to read:
   6201.  (a) An excise tax is hereby imposed on the storage, use, or
other consumption in this state of tangible personal property
purchased from any retailer on or after July 1, 1935, for storage,
use, or other consumption in this state at the rate of 3 percent of
the sales price of the property, and at the rate of 21/2 percent on
and after July 1, 1943, and to and including June 30, 1949, and at
the rate of 3 percent on and after July 1, 1949, and to and including
July 31, 1967, and at the rate of 4 percent on and after August 1,
1967, and to and including June 30, 1972, and at the rate of 33/4
percent on and after July 1, 1972, and to and including June 30,
1973, and at the rate of 43/4 percent on and after July 1, 1973, and
to and including September 30, 1973, and at the rate of 33/4 percent
on and after October 1, 1973, and to and including March 31, 1974,
and at the rate of 43/4 percent thereafter.
   (b) (1) Notwithstanding subdivision (a), on and after July 1,
2013, the rate shall be 33/4 percent.
   (2) The rate reduction required pursuant to paragraph (1) shall
only take effect if the California unemployment rate average for the
last two calendar quarters of 2012 is 10 percent or higher, and shall
remain in effect only until the end of the calendar quarter in which
the California unemployment rate is less than 10 percent for three
consecutive calendar quarters.  
  SEC. 3.    This act provides for a tax levy within
the meaning of Article IV of the Constitution and shall go into
immediate effect.